iGate plans to delist Patni Computer
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U.S. listed software company iGate said on Wednesday it plans to delist shares of its unit Patni Computer Systems to obtain full ownership of the company and intends to fund the acquisition of the shares through debt.
It will offer shareholders a minimum price of 356.74 rupees a share, an 8.2 per cent discount to Patni's Wednesday close of 388.85 rupees on the National Stock Exchange.
iGate, through two of its subsidiaries, plans to delist Patni's shares from the Bombay Stock Exchange, the National Stock Exchange as well as its American Depository Receipts from the New York Stock Exchange.
The delisting , expected to be completed by mid-2012, will be done through a reverse book building process, iGate said in a statement. It plans to arrange a debt facility of around $215 million for the acquisition.
Fremont, California-based iGate, backed by private-equity firm Apax Partners, had in January acquired a majority stake in Patni for $1.2 billion in one of the largest deals in India's technology sector.
"The promoters have stated that their objective in making the delisting proposal is to obtain full ownership of the company, while providing an attractive exit opportunity to the public shareholders," Patni said in a separate statement to the Bombay Stock Exchange.
Public shareholders own about 12.5 per cent of Patni, while the founders hold 80.4 per cent, it said.
Patni said its board has granted approval for the delisting of shares and the company will seek shareholder approval.
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